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Peru Orders Canada's Gold Hawk to Relocate Some Mine Operations

By Alex Emery

July 18 (Bloomberg) -- Canadian miner Gold Hawk Resources Inc. said Peru's government ordered the company to relocate some facilities at its gold and silver mine in the central Andes because of imminent risk of landslides.

The Peruvian Cabinet chief's office declared a state of emergency at the Tamboraque Hill area, where the Coricancha mine has tailings facilities, Vancouver-based Gold Hawk said today in a statement distributed by Marketwire. The 1,690-hectare (4,174- acre) concession produced 17,800 ounces of gold and 608,000 ounces of silver last year, according to the company's Web site.

``We believe this Decree will expedite the required authorizations to implement measures that will minimize the risks to people, the environment and property,'' Gold Hawk Chief Executive Officer Kevin Drover said in the statement.

Gold Hawk started up the mine last year, Peru's fourth new gold mine in three years, a period in which gold prices have doubled. Barrick Gold Corp., Gold Fields Ltd., and Minera IRL Ltd., have also built gold mines since 2005 in Peru, the world's fifth-largest gold producer.

To contact the reporter on the story: Alex Emery in Lima at aemery1@bloomberg.net.

Last Updated: July 18, 2008 19:50 EDT

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